Has RBI lost control of the rupee?

Fifteen or so years ago, when it first took shape, the Indian rupee non-deliverable forward (NDF) market traded barely a few hundred thousand dollars a week. By four or five years ago, the volume had risen to $2 billion to $3 billion a day, and the terms “NDF arbitrage” and “buying in NDF” became more and more common in dealing rooms.

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